Assume a company is preparing a budget for its first two months of operations. During the first
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Question:
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $45,000 and $79,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month?
Multiple Choice
$62,000
$35,550
$39,500
$58,050
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